Room and Board is considering two capital structures that have a break-even EBIT of $28,800. The all-equity capital structure would have 17,200 shares outstanding. The levered capital structure would have 12,700 shares of stock and $93,000 of debt. What is the interest rate on the debt? Ignore taxes.

A 7.27%

B 8.49%

C 9.26%

D 8.10%

E 7.70%